Short-sellers hate being caught short a stock that reports a blowout quarter. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions. Even the best short-sellers know, it's never a great idea to stay short once a bullish earnings report sparks a big short-covering rally.

This is why I scan the market for heavily shorted stocks that are about to report earnings. You only need to find a few of these stocks every week to help enhance your portfolio returns.

With that in mind, let's take a look at several stocks that could experience big short squeezes when they report earnings this week.

GameStop

My first earnings short-squeeze trading opportunity is omnichannel video game retailer GameStop (GME - Get Report) , which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect GameStop to report revenue of $3.1 billion on earnings of $2.29 per share.

The current short interest as a percentage of the float for GameStop is very high at 24.1%. That means that out of the 99.65 million shares in the tradable float, 24.05 million shares are sold short by the bears.

I would wait until after GameStop reports, and then look for long-biased trades if this stock manages to break out above some near-term resistance levels at $25.30 to its 200-day at $25.56 and then above more resistance at $26.27 to $27.37 with volume that hits near or above 2.60 million shares. If that breakout hits post-earnings, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $31.29 to its 52-week high of $33.72 a share.

Oxford Industries

Another potential earnings short-squeeze trade idea is apparel player Oxford Industries (OXM - Get Report) , which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect Oxford Industries to report revenue of $267.28 million on earnings of 92 cents per share.

The current short interest as a percentage of the float for Oxford Industries is notable at 8.2%. That means that out of the 14.99 million shares in the tradable float, 1.23 million shares are sold short by the bears.

I would wait until after Oxford Industries reports, and then look for long-biased trades if this stock manages to break out above its 20-day at $55.01 and then above some key near-term resistance levels at $57.26 to $57.80 with volume that hits near or above 165,608 shares. If that breakout fires off post-earnings, then this stock will set up to re-test or possibly take out its next key resistance levels at its 200-day of $60.92 to $62, or even $63 to $64 a share.

Actuant

Another potential earnings short-squeeze candidate is industrial goods player Actuant (ATU - Get Report) , which is set to release numbers on Wednesday before the market open. Wall Street analysts, on average, expect Actuant to report revenue of $250.41 million on earnings of 12 cents per share.

The current short interest as a percentage of the float for Actuant stands at 8%. That means that out of the 57.73 million shares in the tradable float, 4.64 million shares are sold short by the bears.

I would wait until after Actuant reports, and then look for long-biased trades if this stock manages to break out above some key resistance levels at $29.17 to its 52-week high of $29.80 with volume that hits near or above 463,601 shares. If that breakout materializes post-earnings, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $32.20 to $34.30, or even $35 a share.

Micron Technology

Another earnings short-squeeze prospect is semiconductor player Micron Technology (MU - Get Report) , which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect Micron Technology to report revenue of $4.64 billion on earnings of 84 cents per share.

The current short interest as a percentage of the float for Micron Technology sits at 4.4%. That means that out of 1.04 billion shares in the tradable float, 45.86 million shares are sold short by the bear.

I would wait until after Micron Technology reports, and then look for long-biased trades if this stock manages to break out above its 52-week high of $26.61 and then above some key past resistance at $29.80 with volume that hits near or above 25.54 million shares. If that breakout hits post-earnings, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $32 to $33, or even $36 to $36.50 a share.

REX American Resources

(REX - Get Report)

My final earnings short-squeeze play is ethanol player REX American Resources (REX - Get Report) , which is set to release numbers on Friday before the market opens. Wall Street analysts, on average, expect REX American Resources to report revenue of $121.30 million.

The current short interest as a percentage of the float for REX American Resources is pretty high at 12.2%. That means that out of the 5.20 million shares in the tradable float, 637,000 shares are sold short by the bears.

I would wait until after REX American Resources reports, and then look for long-biased trades if this stock manages to break out above some key resistance levels at its 50-day of $84.19 and then above $86.68 to $87.54 with volume that hits near or above 51,661 shares. If that breakout triggers post-earnings, then this stock will set up to re-test or possibly take out its next major resistance levels at $91 to $93, or even $95 to $96 a share.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.